Vancouver Condo Liquidation???
January 17th, 2009OK, I thought I would give this story a day to cool off before writing about it.
Onni and Mac Marketing are working together to help spur sales in a number of lagging developments. They are advertising that this is the largest real estate liquidation event in Vancouver.
Well this is probably a great strategy that MAC has come up with, it puts some excitement back in the real estate marketing game which I am sure has been hurting, as well it gives developers a chance to move product that is not going to move otherwise, and it gives buyers a chance to buy new product at a reasonable price rather than at prices that have not been reasonable for longer than the market decline.
Lets face it, New Developments have been overpriced for 2 to 3 years now as developers have tried to build in some of the expected price increases and building costs, so to drop prices by 25-40% is a bit misleading to the average person. Those prices were probably 10% above where they should have been at the height of the market, and now that we have seen the market come down about 15%, we are really looking at these properties being priced at market to maybe 15% below.
Don’t get me wrong, that is a good thing as people will now be able to consider new properties as a very viable option.
But we must remember than many of the sales that are happening today are below market value as that is what it is taking to get buyers to make the move in these conditions.
In any event, I think this is smart angle and good for buyers, but just want to put in perspective as the numbers being tossed around are the type of things that the media loves and adds to the fear and hype that the market is in a fee fall which is not exactly a fair analysis.
February 1st, 2009 at 3:27 pm
The idea of a “liquidation” does not exist in real estate nor does “below market value” there is simply the price paid which is determined by supply and demand. For a long time Vancouver has had a frenzied demand fueled by the greedy speculators whose dreams of easy money was as simple as buy and flip. Greedy developers were only too happy to accomodate with more housing than we know what to do with. The demand has evaporated and the supply flood is coming DO NOT BUY watch the tower of perceived “value” crumble.